3 penny stocks I’d buy for my Stocks and Shares ISA

History shows that share investors don’t need to spend a fortune to make terrific returns. Here are three great penny stocks I’d buy today.

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I’m searching for the best UK shares to buy for my Stocks and Shares ISA. Here are three top-quality penny stocks on my radar right now.

A rock-solid penny stock

Sometimes boring can be mega attractive. This is why I’m a big fan of Assura (LSE: AGR). As owner and operator of primary healthcare properties in the UK, its day-to-day business isn’t exactly gripping.

But from an investment perspective this makes it a terrific stress-free stock to buy, at least in my opinion. Even as the Covid-19 crisis worsens again, this penny stock doesn’t have to worry about earnings taking a battering. This remains the case, whatever social, economic or crisis comes along.

It’s possible that changing healthcare policy in Britain might affect demand for Assura’s properties going forward. But as things stand, government need for primary healthcare facilities is rising, not receding. And I expect demand for healthcare properties to rise as the country’s population steadily ages.

Cooking up a storm

A few years back The Restaurant Group (LSE: RTN) was in a heck of a state. No-one was going into its unfashionable eateries like Frankie & Benny’s and Chiquito, in spite of the vast sums it was spending to refresh its menus and improve its brands.

However, it finally seems to be turning the corner,  thanks in large part to its acquisition of super-popular noodle chain Wagamama. And according to its November trading update, the business is outperforming the broader market.

With Britons spending more of their disposable incomes on leisure activities like eating out the future may finally be looking rosy for The Restaurant Group. This is why I’m considering buying this turnaround stock today.

But remember that the mid-table restaurant market has been littered with casualties like Gourmet Kitchen Burger and Jamie’s Italian in recent years. The Restaurant Group will have to keep pedaling wildly to keep the recovery going amid high levels of competition.

Another top buy for my ISA

I’m also thinking about adding City Pub Group (LSE: CPC) to my Stocks and Shares ISA. Like The Restaurant Group, this penny stock could be a great way to exploit rising expenditure on social activities. It operates around 45 pubs and bars in Southern England and Wales.

All of its premium sites offer a high-end experience to drinkers, allowing it to stand out against branded pubs and to capitalise on a fast-growing part of the market.

My main concern with buying City Pub shares is the spectre of ballooning Covid-19 cases in the UK. The emergence of the Omicron variant has pushed the number of people dining out in the UK to their lowest level since mid-May, a recently-released study shows.

I think City Pub has plenty of long-term potential, though I am aware that profits could take a whack in the near term.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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